A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
et powerECO204: Homework Assignment 3 1. True, False, Uncertain a. A firm that enjoys economic rents earns higher economic profits than other firms without the economic rents. b. Relative to the perfectly competitive equilibrium, the equilibrium outcome for a market dominated by a monopsonist will be higher prices and lower levels of good demanded.
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
There are many people in this world do jobs they don't like, but have to do it because they don't have any other ways of income. What come in your mind when you see an average joe win a million dollar using his skill and doing the thing he loves. This will take us back to the picture that I used to present in the class. It was a stage photo of Joseph Cada the World Series Of Poker Main Event champion. The picture was taken few minutes later after he won his 8.5 million dollar first prize in the event.
Whereas the competitive market was a price taker, the monopolistic is a price maker. It has control over the price. Examples of monopolistic firms are public services like the electric, water, and the United States Postal Service (USPS). The rate for the USPS has declined in the last couple of years because of poor service. The third market structure that is between competitive market and monopoly is oligopoly, which firms can be either in-cooperative of cooperative.
That’s where all his money comes from” (37). Gatsby goes around telling lies to people about how he got money and rumors went around that he is a cousin or nephew of Kaiser Wilhelm a German ruler in WW1. Most of Jay Gatsby wealth came from crime and bootlegging. Gatsby throws parties at his mansion, anyone can attend and has servants to do things for him and others. Jay Gatsby threw parties so everyone can attend.
3. Based on the results in Appendix B, different methods of recruitment are successful or failures based upon the market. The most costly and least beneficial method does seem to be the kiosk method. There is a large up front cost and the benefits and recruitment results do not support the cost. The referral program seems to be successful in the markets in where it is used.
Natural Monopoly Case Telecommunication Law & Regulation Natural Monopoly Case What is Natural Monopoly? The concept natural monopoly emerges when the production of service or product can be provided by one firm more efficient and cost effective than two or more firms. In a natural monopoly there is a high fixed cost and company must overcome large barrier to entry its market. An example of barriers that a company must sustain consists of high startup costs, specialized technology, or difficult licensing and regulation requirements in an industry, limit the number of possible entrants into the industry (Hill, 2014). This means that a company is able to provide the lowest price and in addition it’s one of the fewest company’s which is capable of overcoming the challenges of startup cost in order provide a cost effect product or service for its consumers.
Target could have very well been in the monopolistic competition structure but did meet some of the structure points. Monopolistic competition structure has many firms and do not usually take into account the responses of other firms. This was the main difference between oligopoly and Monopolistic competition. Wal-Mart, K-Mart, Costco, and the few others in the scope of this type of retail chains are more considered a few than many. They all tend to react to each other’s
| Countries are similar in their ability to produce goods efficiently | B. | International trade is rarely beneficial to a country | C. | Potential world production is greater with unrestricted free trade than it is with restricted trade | D. | Trade is a zero-sum game | | |